How to Make Money Offering Payroll Services

Is it possible for accountants to make money from payroll? This seems highly unlikely given thenumerous service providers and solutions that are readily available.

Our clients have told us countless times that 'Payroll is wearisome, laborious and calls for lots of resources. ' At other times, they have also stated that 'Payroll is over-regulated with tax changes enacted each year and now with 'making tax digital' adding further challenges. Accountantstherefore find it problematic to keep up to date 'or'often uneconomic'.

But having gained a lot of experience offering payroll subcontracting services for about 12 years now, we have come to the realization that 'payroll' is not a service that has to be sold at a loss as some of our clients think or assume. There are indeed several ways via which accountants can enhance their practice lucratively by offering payroll services.

So, how can you make money?

Look at it from a different perspective!

The state of affairs regarding payroll has changed over the past decade. The arrival of cloud technology and new online tools and software have made it possible to administer payroll services on the internet. In fact, you may be caught unaware if you neglect to add payroll services to your offers.

Accountants have begun to talk openly about offering payroll services since it is now trending after several decades of rebuffs.

If you find this incredulous, then read on to find out more.

How you can win by offering payroll services.

One of the notable differences between our profession and other professions is that ours makes us cynical. An accountant that knows his onions must imbibe logic, proof and sound judgment as he practices the profession. Is there any reason why accountants should not refuse to offer payroll services?

Some of the reasons why accountants should begin to provide payroll services include the following:

One-stop shop– A majority of clients look forward to getting several services all from one place. The demands from clients nowadays usually include real time management reporting, statutory filings, timely financial reporting and tax needs and an expectation of their service provider to go beyond a conventional accountant and act as a virtual financial controller including the management of payroll services. When you offer a complete package, you will end up retaining more clients which places you in an excellent position to deliver value to your client.

Stronger and healthier relationship with customers– If you get to manage more of your clients' work, you will end up developing and enjoying a long term sustainable relationship with them.More services = more reliable customers = customer retention.

Upsell – When you offer payroll services, it will undoubtedly pave the way for other services like managing other tax liabilities, financial reporting, regulatory compliance, business process improvements to name few, which you can upsell to your clients. Whilst some of these offerings may be of non-recurring nature but often carry higher margin.

New clients – New customers looking for a 'one stop shop' solution will quickly be pulled in without much difficulty.

How to make payroll a lucrative venture – outsourcing is the solution

Due to the intense competition in the market,the best way to make payroll services lucrative is to minimize the costs. And a successful solution of doing that is thatyou outsource the work reducing the time and effort required for delivering the service in-house by a dedicated staff.

We at MaderaOutsourcing can provide you with bespoke outsourcing services which can address this challenge.

We understand the challenges of RTI Compliant Pay roll and the importance of paying employees on time and provide payroll administrators with full information on PAYE RTI, Auto-enrolment and the use of specialist software like Xero, Payroll Manager, SAGE Payroll, and IRIS among others. We also respond to HMRC or government notices on your behalf, and assist you with responses to any regulator queries.

To know how profitable payroll can be, you need to compare how much it will cost you to offer the service within your firm versus outsourcing it.

Our specialist will be more than happy to discuss your accounting firm's needs and provide you with a tailor made solution which can help provide payroll services in most cost effective and efficient way.